1 Purpose

1.1 The purpose of the Scrutiny Panel was to look at how partners locally, including the private sector, can work together to influence the local economy.

Key lines of Inquiry:

- How can schemes, such as Apprenticeship Programmes, be developed and expanded so that they deliver for both local employees, employers and local residents?
- What is the vision for skills and learning issues, particularly low skills?
- What support is there for those that are in long term unemployment?
- What are the areas for potential growth in jobs?
- What can other organisations/groups/individuals do to help?
- Whether a mapping skills gap exercise has been undertaken to identify the type of skills that are in short supply; and what the findings of this exercise are
- How specific servicers can be used to generate business investment
- How can the offer of commercial land in the borough be improved to ensure a steady stream of quality premises that are accessible by new and established organisations?
- What could feasibly be done to improve the physical infrastructure in and around the town?
- How it can be ensured that those who are seldom heard or isolated are engaged with?

1.2 A copy of the scope of the review is attached at Appendix A. 2 Context and Background

2.1 The Overview and Scrutiny Committee, at its work programming event in June 2015, agreed to include a review of the health check of the local economy. The Overview and Scrutiny Committee commissioned Scrutiny Panel 1 to undertake the review. An in-depth review commenced in July 2015 and concluded in March 2016.

2.3 This review links to the Council’s corporate priorities, particularly corporate priority 1 – Northampton Alive - A vibrant town.

2.4 The Scrutiny Panel established that the following needed to be investigated and linked to the realisation of the Council’s corporate priorities:

Background data, including:

- Presentation to set the scene: “To identify the issues locally – The Northampton Picture”
- Relevant national and other background research papers, such as:
  - Mitigation Advisory Committee: Skilled Shortage Sensible (2013)
  - UK Commission’s Employer Skills Survey 2013: UK Results (2014)
  - Future of Apprenticeships in England: Implementation Plan (2013)
  - Winning the Global Race: Jobs, Skills and the importance of vocational education (2014)
  - Department for Business, Innovation and Skills – Evaluation of Apprenticeships: Employers (2012)
  - Warwick Institute for Employment Research: Review of Apprenticeships Research (2013)
  - SEMLEP – Strategic Economic Plan 2014
  - NEP – Northamptonshire Strategic Economic Plan 2014
- Survey data in relation to skills and skill shortages, including equality data within the wards • Relevant data, such as ONSA and other statistical data, including Government statistics on apprenticeships • Best practice and successful initiatives in both Northampton and elsewhere • Witness evidence: **Internal**
  - Leader of the Council, Northampton Borough Council (NBC)
  - Cabinet Member for Finance, NBC
  - Cabinet Member for Regeneration, Enterprise and Planning, NBC
  - Director of Regeneration, Enterprise and Planning, NBC
  - Director of Workforce and Development, LGSS **External**
  - Academic, University of Northampton, Northampton College and Moulton College
  - Director, Northamptonshire Enterprise Partnership
  - Director, Adult Learning, Northamptonshire County Council
  - Chair, Northampton Town Centre BID
  - Chair, Markets Action Group
  - Chair, Brackmills BID
  - Director, Northamptonshire Connexions
  - Director, Talent Match, Northamptonshire
  - Director, Northamptonshire Growth Hub
  - Director, SEMLEP
  - Director, Northamptonshire Chamber of Commerce
  - Assistant Director, Transport Highways & Infrastructure, Northamptonshire County Council
  - Key employers in the town
  - Skills Funding Agency (SFA)
  - Apprentice Training Agency
  - Local employers 3 Evidence Collection and Desktop Research

3.1 Evidence was collected from a variety of sources:

3.2 Background reports

- **Presentation to set the scene: “To identify the issues locally – The Northampton Picture”**

- **Mitigation Advisory Committee (MAC): Skills Shortage Sensible (2013)** A copy of the report can be located [here](#).

- **Inspiring grown – CBI/Pearson Education and Skills Survey 2015** A copy of the full report can be located [here](#).

- **UK Commissioner’s Employer Skills Survey 2013: UK Results (2014)** A copy of the full report can be located [here](#).

- **Future of Apprenticeships in England: Implementation Plan (2013)** A copy of the full report can be located [here](#).

- **Winning the Global Race: Jobs, Skills and the importance of vocational education (2014)** A copy of the full report can be located [here](#).

- **Department for Business: Innovation and Skills – Evaluation of Apprenticeships: Employers (2012)** A copy of the full report can be located [here](#).

- **Warwick Institute for Employment Research: Review of Apprenticeships Research (2013)** A copy of the full report can be located [here](#). • **SEMLEP – Strategic Economic Plan** A copy of the full report can be located [here](#).

• **NEP – Northamptonshire Strategic Economic Plan 2014** A copy of the full document can be located [here](#).

**National Careers Services (NCS)**

Northampton Careers Services (NCS) reports that Northamptonshire Enterprise Partnership (NEP) follows the Northamptonshire county boundaries and has one of the fastest growing populations of all LEP areas. Its key economic sectors which provide high numbers of jobs are:

- high performance technologies
- logistics
- food and drink

**Northamptonshire’s Labour Market**

NCS goes on to report that the Northamptonshire labour market is relatively buoyant, with above average employment rates (75% of working age population employed compared to 70% nationally) and below average levels of economic inactivity (19% of working age population compared to 23% nationally. This data was reported in the Annual Population Survey 2012.

**Skills Shortages**

Northamptonshire has been rated in the top three LEPs nationally for a tight labour market. NCS highlights that this means that recruiters find it difficult to get staff and there is competition for labour due to a low number of unfilled vacancies per claimant. NCS goes on to state that this indicates that the labour market is working well to match people to jobs and that the local economy is creating a significant number of jobs. NCS reports that skills shortages in hard to fill vacancies are particularly high in associate professional occupations, elementary staff and skilled trades. Continued employment growth is forecasted in higher skilled, white collar occupations, including managers, professionals and associate professional roles. An estimated two million additional jobs in these occupations are expected to be created by 2020 nationally.

Skills and Sectors in Northamptonshire

Food and Drink Sector

NCS advises that the food and drink sector in Northamptonshire is a significant employer with around 46,000 jobs supported by prospering businesses. In this sector the challenge is to attract skilled and semi-skilled labour.

High performance technologies

NCS reports that there are 21,000 people currently employed within high performance technology in the county. However, there are key concerns around maths’ abilities at all levels. Manufacturing provides employment for 12.3% of the working population in Northamptonshire. This data was published in the Northampton Waterside Enterprise Zone Skills Strategy and Plan, March 2013. Statistics for people starting Apprenticeships within the science, engineering and manufacturing sector for 2012/13 are relatively high (proportionally) with 139 starts within the sector and 172 science, engineering and manufacturing frameworks being undertaken. This indicates that this area of expertise is being sought from businesses who consider themselves outside of the sector.

Logistics

NCS reports that considerable demand is predicted for managers, customer service positions and transport and machine operatives. It advises that there are a large number of near-to-retirement drivers (16% of LGV drivers are 60 or over) and there has also been a decline in the number of people taking and passing their Large Goods Vehicle test, which is a decline of 31% from 2006/07 to 2010/11). NCS highlights that as a sector which provides a high percentage of employment in Northamptonshire these national issues also affect the local area and need to be addressed to maximise job creation and employment locally. Human resources departments have tried to train staff and reduce the amount of agency staff used, preferring instead to use temporary staff. Apprenticeships can provide trained staff and generally raise awareness of career opportunities in the sector.

**Health & Social Care**

NCS advises that there is a strong supply of jobs in the sector in the county, though not with matching interest from jobseekers. The increase in jobs is due to the growth in population over the last decade and future planned growth within the county. The majority of jobs in this sector are at entry level and providers and employers struggle to attract suitable young people into the Apprenticeship opportunities.

**Main areas of growth in Northamptonshire**

NCS reports that there is significant employment growth potential in the high performance technology and logistics sector. However, more needs to be done to address the skills gap highlighted above – both in terms of working with employers to develop career pathways to address skills gaps and to encourage more young people into these sectors.

The Northampton Enterprise Zone is one of the largest enterprise zones in the country. It aims to become a centre of excellence for high performance technologies, construction and financial services.

The further development of industry in the county depends on a skilled workforce. Science, technology, engineering and maths (STEM subjects) are essential. These subjects are the foundation which will help our local economy to grow. Low carbon technologies fall within these growth sectors in the county. We need to ensure that young people are getting the right types of skills and knowledge associated with these new and emerging technologies. Construction skills are also likely to be in demand due to significant development plans within the county. Significant housing growth within the county is likely to generate a demand for these types of skills. In logistics around 8,250 jobs between 2010 -2021 are expected to be created (an increase of approximately 20%).

Northampton Waterside Enterprise Zone – Research into collaboration opportunities to make a difference May 2013

The findings and conclusions from this report can be located at Appendix C to the report.

National Apprenticeship Service

The National Apprenticeship Service (NAS) website is the official website for general information about apprenticeships in England. NAS supports, funds and co-ordinates the delivery of Apprenticeships throughout England. The website is a source of information on apprenticeships. All vacancies are advertised. The website contains information including training opportunities and information for organisations providing apprenticeships.

Apprenticeships - GET IN. GO FAR

This website provides details of providers of apprenticeships, such as:

- PWC
- Sandander
- Specsaver
- Sky
- Royal Air force

Prospective apprentices can view vacancies, which includes higher apprenticeships; apply and speak to an advisor if they have a query. It also provides information for employers on how they can engage an apprentice. Apprentices and organisations that offer apprenticeships provide information on the website.

**GOV.UK**

Gov.Uk contains a webpage where prospective apprentices can search for apprenticeship vacancies and learning providers.

### 3.2.1 Background statistics

The economic context:

- Northampton accounts for 18.1% of the total East Midlands GVA (gross value added) - £149,979 billion

- 63.32% of Northamptonshire is of working age, aged 16-64; of which 77% is in employment. There are 117,500 economically active people in Northampton of which 112,600 are currently employed (96,000 are considered employees whilst the remaining 15,500 are self-employed).

- Employment by occupation change from 2011-2014 – The largest increase was within the professional field at plus 3.7%; followed by caring, leisure and other occupations at .9%. The largest decrease was within the process plant and machine operatives sector with a decrease of 2.2%; followed by the skilled trade at a decrease of 1.8%

- 80.4% of Northampton’s working age population are economic active; leaving 27,800 inactive

- As of February 2015, there were 16,700 working age benefit claimants in Northampton

- Northampton’s location offers networks for various universities with a commute of one hour

- There are lower levels of skills achievement at every level in Northampton compared within the East Midlands and Great Britain statistics. The population of Northampton that have no qualifications has reduced from 15.1% in 2004 to 11.6%

- Skills capital projects in the surrounding areas include:

  - Northampton College
  - Engineering Futures
  - Advanced Integrated-Engineering Centre for Transport
  - Engineering and Construction Skills Centre
  - Smart City Thinking
  - Banbury and Bicester College

- Apprenticeships and traineeships in Northamptonshire have increased from 2,790 in 2005/6 to 7,690 in 2013

- Northampton delivered 2,020 apprenticeships starts in 2013-14

- 6.1% of Northamptonshire population are NEETs (16-18)

- Long term unemployment is marginally higher in Northampton at 0.5% than at GB level (0.4%)

**Graduates in Northampton**

Of the 2,200 leavers who responded to the 2013/14 DLHE survey and were in work:

500 (23%) work in Northampton and a further 265 (12%) work in Northamptonshire.

35% work in Northamptonshire.

During 2014/15, 625 (graduates from 2013/14) went into full-time employment in the county and a further 140 had part-time employment in the county as their main activity. Northamptonshire’s Service Sector Outperforms Manufacturing

Service sector firms in the county outperformed manufacturers during the second quarter of 2015, according to a report by Northamptonshire Chamber of Commerce.

The Quarterly Economic Survey (QES) revealed that Northamptonshire manufacturers faced a slowdown in growth; however confidence remains high in both sectors.

According to the latest QES published on 8 July, 96% (up 2% on Quarter 1) of service businesses said UK sales had increased or stayed the same. Compared to manufacturing, 63% (down 11% on Quarter 1) of businesses in this sector reported static levels or increases during Quarter 2.

For exports, 82% of firms in both service and manufacturing sectors reported level or increased export sales over the last three months.

Firms are still facing difficulties recruiting staff - 73% of manufacturing businesses and 78% of service sector firms’ stated that they’d experienced challenges hiring suitable employees. Manufacturers reported a shortage of skilled manual/technical staff whilst service sector respondents indicated challenges in recruiting skilled professional/managerial employees.

Firms in both sectors showed investment activity which was consistent with Quarter 1 with 22% of manufacturers stating they had an increased investment in plant and machinery whilst a third of service sector firms’ reported they had increased investment in training. Other overhead, for example energy costs, was the main pressure on prices for businesses in both sectors.

A copy of the full report can be located here. Northampton Demography

A copy of the briefing note can be located here.

3.3 Core questions

3.3.1 The Scrutiny Panel devised a series of core questions that it put to key witnesses over a cycle of meetings (Copy at Appendix B).

3.3.2 Key witnesses provided a response to these core questions at the meetings of the Scrutiny Panel held on 15 October 2015, 30 November 2015 and 14 January 2016.

3.3.3 Salient points of evidence:

Director of People, Transformation and Transactions, Local Government Shared Service (LGSS)

- Northampton Borough Council (NBC) is currently reviewing and developing its Business Strategy for 2015-2018 to include its vision for their Workforce Strategy moving forward. It is anticipated that apprenticeships will be a part of this strategy moving forward. NBC promotes and supports apprentices locally in service areas, in both their customer service and facilities team.

- Partners can, through their own workforce strategies, take a lead in growing their own, via apprenticeships and engaging a lower skill in the employment market.

- NBC has experienced changes in national policy and legislation, unprecedented funding reductions and cuts in public spending and technological innovation impacting on customer’s expectations for service delivery; this has all intrinsically changed how services can be delivered now and in the future. The authority has changed fundamentally how it operates and is becoming more creative and innovative, engaging with customers, communities, private, public and voluntary sector partners to find solutions to ensure delivery of its vision: ‘Northampton alive with innovation, enterprise and opportunity’. The Council is currently working to re-published its Corporate Plan for 2015-2018 to clearly articulate its priorities and set out what NBC wants to achieve.

- Workforce changes have included in 2013 the transfer of 222 NBC staff into LGSS, to deliver a variety of professional services within a shared service offering and also the recent transfer in Jan 2015 of 260+ staff in the formation of Northamptonshire Partnership Homes (NPH), an Arm’s Length Management Organisation that is wholly owned by the Council but which has its own board of Directors.

- More changes for the workforce have included changes to employee terms and conditions, including pay and working hours and developments with technology including EDRMS and Agresso. LGSS OWD was commissioned to deliver a ‘Workforce Training and Development Plan’ to develop the skills and learning required within the workforce, to continue to deliver services in this changing environment.

- An agreed approach to first phase (to meet immediate skills gap – May 2015-March 2016) is in place.

- Each partner could start their own skills mapping as part of a longer term workforce development strategy, a second phase for NBC from May 2015 and ongoing has been agreed.

Service Manager, Adult Learning, Northamptonshire County Council (NCC)

- The Government wants to achieve 3 million apprenticeship starts by 2020. Government money for apprenticeships will be released and re-directed as part of the Government’s plans for the Skills Funding Agency (SFA) to support Local Enterprise Partnerships (LEPs) to review local provision and merge colleges, where appropriate, creating Technical Institutes.

- NEP is doing a lot of work with schools to engage schools in promoting apprenticeships at levels 3, 4 to ensure that young people who don’t want to proceed to A levels, will progress to higher level skills.

- NCC’s Adult Learning Service (NCCALS) has a role through a number of its programmes to engage with this group.

- Creative industries are a potential growth sector. The self-employment rate is also relatively high in Northamptonshire compared to neighbouring counties.

- Learners have a range of options to use the skills they have gained to progress to further training and qualifications in a further or higher education provider, get a job, become self-employed, or use the skills for the benefit of their community by volunteering.

- Approximately 7,000 learners are engaged each year. All courses are delivered in local communities. A number of targeted learning programmes are entirely delivered in the most disadvantaged wards where these groups are more likely to be accessed. Approximately 3,500 (of the 7,000) learners are in the targeted programme. NCCALS also has a significant role to play in engaging older NEETs (19 years plus).

- Partnerships with local organisations, who exist to meet the needs of the seldom heard or isolated, are vital to engage with this target group and enter into a dialogue in which people can voice their aspirations, needs and issues and a bespoke programme of learning can be arranged. Key partners include: Kettering centre for the Unemployed (KCU), Wellingborough Homes, Bridge, Papworth Trust, Good Will Solutions and Ground Work. Director, Northampton Enterprise Partnership (NEP)

- Northamptonshire Enterprise Partnership (NEP) has involved in brokering apprenticeships for some considerable time, initially to address the significant number of young people Not in Education, Employment or Training (NEETs), and more recently to respond to the address the significant and growing demand from employers for apprentices. The major Bright Futures campaign has promoted apprentices by showing real young people in real companies in priority sectors. NEP has recruited a team of apprentice ambassadors to promote apprenticeships on a peer to peer basis.

- NEP recognises that in order to meet the needs of employees, employers and local residents it is important to ensure that there are much stronger links between the world of education and the world of work. NEP applied for national pilot status for Enterprise Advisers together with a contract for Careers Inspiration, which sitting alongside Bright Futures promotes careers in Northamptonshire’s key sectors.

- NEP’s vision for skills and learning is outlined within the Strategic Economic Plan (SEP), and is summarised below:

- The SEP can be stripped back to ‘serious about skills’ as it is recognised that the availability of skilled labour is a serious challenge for most Northamptonshire businesses. Skills alongside, investment, innovation, enterprise and competition, is one of the five drivers of productivity and as such it is essential that Northamptonshire has sufficient skills and talent to meet current and future workforce demand, given our productivity ‘under-performance’.

- Serious about skills translates into the following ambitions:

- Best in class –

- Matching supply and demand

- Apprenticeships

- ‘Full’ employment

- 21st Century learning -

- Better Co-ordinated system

- Northamptonshire’s Gross Value Added (GVA) is lower than the national average and as such there is a desire to upskill the workforce to ensure higher value added jobs and increased earnings. This is being delivered by addressing the future pipeline through strategic iag; and the current workforce by supporting employers and key sectors to develop the skills of their workforce through the Sector Strategy Boards and NEP’s Productivity Plan; and by encouraging new inward investment in higher value added employment sectors.

- NEP is also looking to administer grants for the Sir Thomas White Northampton Charity to specifically support younger workers improve their skills and secure work in high demand sectors such as logistics.

- Support of those that are in long term unemployment is important as on the latest statistics long term unemployment is marginally higher in Northampton at 0.5% than at GB level (0.4%).

- DWP operates national programmes to support the long term unemployment back into work. However, alongside these the European Structural and Investment Fund (ESIF) Strategy will provide further support for the long term unemployed to re-enter the labour market, which is really important given Northamptonshire’s high job density, which is higher than national average. This is particularly relevant for Northampton, which has a jobs density of 0.99, in comparison with 0.80 nationally, meaning that not using all of available work force may result in serious labour shortages

- NEP is looking at how grant support, such as that available from the Sir Thomas White Northampton Charity can help support the long term unemployed back into employment. • NEP has formed an Employment and Skills Strategy Board to bring together all key partners to drive forward the work of the employment and skills element of the Strategic Economic Plan.

• NEP is aware of the skills that are in short supply, which given are very tight labour market are pretty much across the board and cover the breadth of occupational types. All sectors are currently facing both growth and replacement demand.

• In terms of immediate demand this appears particularly acute in engineering, HGV driving, construction trades and professions, ICT and food and drink technician and processing.

• Northampton Borough can use the retained business rates from the Enterprise Zone (EZ) and all business rates when these become available for the speculative development of new premises.

• There is an opportunity for preferential borrowings from Public Works Loans Board (PWLB) to be used to provide long term loans to developers to undertake speculative development, as the speculative market still needs to be ‘de-risked’.

• The next round of Local Growth Fund monies could be used to provide enabling funds to open up sites to encourage subsequent investment by developers.

• There is opportunity to develop joint ventures with commercial developers to bring forward sites

• Applications can be made to the next round of Local Growth Fund to support investment in the physical infrastructure, where this has proven economic benefits in terms of jobs and homes.

• Preferential borrowings from Public Works Loans Board (PWLB) could to be used to develop the physical infrastructure in the town. Funding is available in the current financial year to facilitate this.

• Key investment decisions are made for a number of reasons including location, access to markets, supply chain considerations, access to R&D, innovation, skills, labour availability, consistent and can do public leadership, enabling investment, education and training offer, surety of planning, and cultural and quality of lifestyle. • International investors will also be interested in taxation, security and stability and consistency of political processes. • NEP is working with VCSE partners to ensure that those that are harder to reach are engaged in economic growth activity. • The Big Lottery opt-in of the European Structural and Investment Fund (ESIF) also specifically targets groups that are furthest from the labour market. • NEP has been involved in Northampton Alive, which brings together the public and the private sector to move forward Northampton’s growth. Mechanisms such as the Enterprise Zone Board also bring together both sectors to address economic growth issues.

Acting Chief Executive, South East Midlands Local Enterprise Partnership (SEMLEP)

• One of the key challenges is to encourage more SMEs to take on an apprentice. Businesses are often disappointed by the lack of suitable candidates. If they are unable to fill a vacancy then they form a negative experience of apprenticeships. • There is a need to do more to try and close the gap between recruitment expectations from businesses and young people’s awareness of job opportunities. • The many changes to the system, including the introduction of an apprenticeship levy on employers, are not helping the situation. • There is a need to support intermediary organisations to feel confident about advising their clients with regard to apprenticeships and ensure that support/brokerage roles are clear about signposting quickly and accurately. • Enhancing the role and function of the South East Midlands Apprenticeship Ambassador Network to engage with more business leaders would influence ‘decision makers’. SEMLEP would need to ensure that the support is then in place to support businesses through to introducing an apprenticeship programme. • SEMLEP is planning an ‘SME Apprenticeship Brokerage’ service which will be aligned with the Velocity Growth Hub and funded by the European Social Fund and Skills Funding Agency. • SEMLEP has two skills related strategic objectives in their Business Plan. Objective 5: To develop a skilled and adaptable workforce and Objective 6: To address barriers to the labour market for disadvantaged groups.

• SEMLEP’s Business Plan outlines a series of targets to contribute towards these strategic objectives, including to work with a diverse range of partners to increase the number of SEMLEP residents with at least a Level 1 qualification by 2% per annum, increase the number of apprenticeship starts by 150 per annum and reduce the number of reported skills gaps by employers by 5% per annum.

• SEMLEP has a significant allocation of European Social Funding for the period 2015-2020, which is has begun to be rolled out after a national delay. SEMLEP’s vision is that this fund will enable a certain amount of targeting of niche provision in hard to reach areas and will support low-skilled workers to develop their English and Maths skills in a vocational context.

• SEMLEP is currently working closely with NEP and with DWP to develop a Support Into Employment programme using SEMLEP’s allocation of European Social Funding.

• The Government’s Work Programme for long term unemployed is provided by A4E and Ingeus in Northampton

• SEMLEP’s Strategic Economic Plan and evidence base highlights four particular showcase sectors that have the capability, the major assets and the greatest potential to rapidly grow across the SEMLEP area. These are: ➢ High Performance Technology ➢ Logistics ➢ Advanced Manufacturing (including Food and Drink) and ➢ Cultural and Creative Sectors (including the visitor economy and sport)

• SEMLEP is very keen to work in partnership with other organisations/groups to support its ambitious growth plans, particularly those who have local knowledge and understanding of the needs of employers and individuals. SEMLEP’s quarterly Skills Forum meetings provide a very good platform to become involved.

• Skills challenges facing showcase sectors are: ➢ High Performance Engineering – an ageing workforce and shortage of young people with technical engineering skills ➢ Logistics – 18 vacancies for every individual seeking an HGV role, attracting young people a problem

- Manufacturing & Advanced Technology, including Food and Drink – 137,000 new recruits needed by 2020 to replace those retiring or leaving the sector, specific skill requirements around food technology (courses unviable without collaboration?)

- Arts, Heritage, Sports, Visitor Economy Cultural and Creative Sectors - 2 in 5 employers unable to fill vacancies

- SEMLEP’s 2015 Business Survey has reported:

  - 33% of employers experiencing a gap between the skills available in the local workforce and the skills that they need (compared to 38% in 2014)
  - Job specific (29%) and technical or practical skills (25%) are the two most frequently mentioned skills that have been difficult to obtain when recruiting from outside the organisation
  - Advanced IT skills (11%), sales and marketing skills (11%), technical or practical (10%) and/or job specific skills (10%) were the most commonly cited skills lacking within the existing workforce.

- The Velocity Growth Hub helps existing businesses to grow. The SEMLEP Inward Investment Group focuses on encouraging businesses to locate in this area.

- There is already some supply of land suitable for new commercial development some cases there is new speculative development being undertaken.

- The type of premises being constructed are large distribution warehouses designed to cater for the regional and national market, rather than for those companies who are - necessarily – already based in Northampton.

- Existing businesses in Northampton might take a small amount of the space either recently/currently built, but the target audience for the developers is not the local market.

- In order to provide suitable facilities for businesses who require manufacturing, R&D facilities - and even offices - there needs to be both land allocated for this through the planning system, and the development community needs to be enabled and encouraged to build the properties required. The climate for development funding has rapidly improved in the last two years.

- Funding for small scale speculative development is still limited, but there is a significant ‘weight of money’ in the market for the right schemes • The challenges are many and varied, but broadly the limiting factors to prevent development (without a pre-sale or pre-let) include; construction costs, availability of skilled staff and materials, business rates burden on vacant premises and in many cases the headline rental levels are still not yet robust or make appraisals profitable.

• There may be little the local authority can do to unlock these issues, but the feedback SEMLEP receives regularly from the commercial agents operating in this market is that the initial hurdle most face is insufficient land being allocated for employment uses – notwithstanding the offer at J15/J15a.

• Walking routes around the town, particularly from the station to the town centre could be improved. The new location of the University Campus within the Waterside Enterprise Zone will provide an impetus to improve and upgrade the pedestrian areas in the town centre. Strategic road links across Northamptonshire from the M1 to A14 would benefit from upgrading in some parts. Improved public transport links between Northampton, Wellingborough and Kettering would help young people and apprentices access jobs and training opportunities.

• Primary drivers for investment in Northampton are location and accessibility, including access to the M1 and rail, availability of suitable commercial development and employment land space, proximity to Silverstone and being situated within one of the largest Enterprise Zones in England.

• SEMLEP makes a considerable effort to engage with a diverse range of partners across the Voluntary, Community and Social Enterprise Sectors (VCSE). SEMLEP coordinate VCS, Social Enterprise and Rural LEP Board Sub-Groups that meet at least quarterly.

• SEMLEP’s allocation of European Social Funding for the period 2015-2020, includes a £5m ‘Opt-In’ with the Big Lottery, focusing on Support Into Employment, Financial Inclusion and Community Investment (enterprise). In addition, SEMLEP supports the Northamptonshire LEADER Local Action Group to help stimulate enterprise and employment in rural areas.

• SEMLEP is very keen to meet with any employer, organisation or individual who would like to work together to support our challenging and ambitious growth plans. Manager, Northamptonshire Growth HUB

- Apprenticeships are now offered to a higher level, up to degree level and are offered by Northampton College. There are limited higher level apprenticeships but the number is grow.

- Northampton University had 96% employability (those available for work and undertaking work or further study) 6 months after graduating. One of the technology courses (computing/engineering) achieved 100% employment last year.

- Enterprise in Northampton University is very well established.

- There is an established programme with Northampton Library for start-up business support with some ICT support available in the library.

- Santander Bank offers an internship scheme which is part funded. The internship can be for a period of 3 months full time or six months part time.

- A high percentage of interns are taken on, on a permanent basis.

- The majority of under-graduates have some work experience.

- Northampton University offers strategic support for the wider community regarding health and wellbeing, business and education. The University works with students on volunteering projects too.

- Inspire to Enterprise is a national programme that is run from the University.

- Goodwill solutions (of which the University is a partner) train disadvantaged people, including ex-offenders. These obtain work experience and employment.

- Hope Enterprise offers practical support and work experience for individuals to acquire the Food Hygiene Certificate.

- The University is working with all further education colleges regarding funding for an integrated transport system for the county - a research based project by co-ordinating all public and voluntary sector transport.

- There are a lot of large warehouses and distribution centres in Northampton employing large numbers of low skilled workers. • To raise the skills level, businesses are encouraged to look at all products and services delivered. They are also encouraged to apply for funding to take high level skills forward.

• Northampton University and Northamptonshire Growth Hub are working together to enable employers to access funding for skills from universities worldwide.

• The Knowledge Transfer Partnership for businesses is looking to employ graduates to work on a programme. The business is funded with £20,000 for the graduate. The business also has access to University skills.

• A high percentage of under graduates are mature and a lot of training courses are open to all ages.

• The Inspire to Enterprise programme has been in existence since 2011.

• There is a limited fund for marketing purposes. Growth Hub publishes funding information on its website and circulates a newsletter.

• Higher apprenticeships are currently in limited subjects, such as engineering and technology. The Higher level apprenticeships must be developed and led by employers.

• Northamptonshire Growth Hub receives around 120 enquires each month. It is expected that this will increase during the winter months.

**Project Manager, Talent Match Northants**

• More information about apprenticeships should be given to employers and the different frameworks available in order to give more incentive. More access to funding in order to deliver them and a scheme to fast track applications or help with filling them out is needed.

• Talent Match Northants offers an in house life skills programme and we feel more accessibility to English and maths should be available for all age ranges and not delivered by colleges, the environment and location needed careful consideration for different people. • Talent Match Northants’ project helps long term unemployed young people find employment with local employers. Focusing on 18 to 24 year olds who have been out of paid employment for one year.

• Talent Match Northants is funded by the Big Lottery and it tackles youth unemployment in Kettering and Wellingborough

• Other organisations could help by supporting and promoting Talent Match in the local areas, for those with an invested interest, attend our partnership board.

• The physical infrastructure in and around the town should be made more appealing, more attractive, lower rents, more funding to encourage business start-ups, offer free business start-up advice, invest in the town, make the residents feel special, more housing.

• Businesses invest in Northampton as it is the biggest town in the county and has more opportunity for business

• There is a need to educate the community, priority group work, more access, more funding, create more jobs and more acceptability

• There is a need to educate the people of Great Britain, make sure they know EU migrants can boost the economy. Create more help for EU entrepreneurs and easier access to funding to start businesses. Employers and partners working together for the benefit of the community. Ensure people are at the heart of changes that affect them.

Executive Director, Skills Funding Agency (SFA)

• In the 2015/16 financial year to date, there have been 524 new apprenticeship starts across Northampton.

• Just over 200 of these were Higher Apprenticeships (Level 3 and above) and just over 300 were Intermediate Apprenticeships (Level 2).

• The Government’s ambition is for three million apprenticeship starts in the lifetime of this Parliament.

• In the five years of the last Parliament, a total of 2.3 million apprenticeship starts were achieved. • However, to reach 3 million new apprenticeship starts by 2020, this is the equivalent to more than one apprentice – starting every minute – of every day – over the next five years.

• The Government has been very clear that apprenticeships will continue to be at the heart of the drive to equip people of all ages with the skills that employers need to compete and prosper in a challenging global marketplace.

• Apprenticeships contributed £34 billion to the UK economy in 2014.

• Nine out of every ten apprenticeship employers hoping to achieve business benefits tell the National Apprenticeship Service that apprenticeships make good commercial sense – helping to drive productivity and growth.

• Equally, public sector bodies – such as councils – need to embrace apprenticeships.

• Apprenticeships provide access to a wide pool of talented individuals with the skills to improve the services offered by local councils across a huge variety of roles.

• Apprenticeships across Northampton are being delivered by both public and private training providers including:

- Northampton College
- Learndirect
- Babcock Training
- Starting Off (Northampton)
- Lifetime Training
- HIT Training
- Telford College
- Elmfield Training
- First4skills ltd
- JHP Group
- ESG (Skills) Ltd

• Employers are now in the driving seat for apprenticeships. Over 1,300 employers nationally are developing and designing new apprenticeship standards to ensure they meet the needs of business.

• Apprenticeships are available in more than 750 sectors. • Local councils can work with their Local Enterprise Partnerships to ensure that local skills needs can be met through apprenticeships.

• Local Enterprise Partnerships are responsible for identifying and prioritising local business skills needs.

**Assistant Director – Environment, Development and Transport, Northamptonshire County Council (NCC)**

• Work is being undertaken within the county to promote apprenticeships including work undertaken by NEP on the Bright Futures campaign, Connexions information evenings, the Skills Show and the Information and Advice Conference for IAG Teachers. Other promotion through providers and the provider network already occurs.

• Apprenticeships are delivered by a mix of private and publicly funded organisations. It is anticipated that 90% of SMEs within Northamptonshire do not participate in the employment of an apprentice.

• In a piece of work undertaken in 2014 the following issues were highlighted by stakeholders:

➢ Employability skills ➢ Promoting the vocational route ➢ Basic skills ➢ Intermediate and technical skills ➢ Information, advice and guidance

• Residents, young people, workers, business owners, entrepreneurs and visitors will benefit. Northamptonshire will have cemented its reputation as the ‘location of choice’ for ambitious firms, both in the UK and globally. A comprehensive programme of new infrastructure will be put in place including the introduction of countywide Superfast Broadband

• There has been for a long time the Government funded Work programme run by Ingeus and A4E.

• Long term unemployment within the county has become less of a concern. The greatest concern is in helping those furthest away from the labour market and who may be on Employment Support Allowance. Welfare reforms are expected to hit these groups hardest.

- Some of the European Social Fund programmes (ESF) will look at providing support for these client groups through DWP and Big Lottery matched provision.

- A number of Voluntary and Community organisations help support people into employment. Organisations such as ENABLE have run these courses and support for a long period of time.

- The colleges are currently pulling together Labour Market information as part of the area based review.

- The LEPs have been looking at different forecast models and undertook broad analysis as part of the SEP development:

- Replacement demand for skills and employment must be borne in mind in terms of existing key sectors such as manufacturing.

- The County Council has been proactive in developing a flexible approach to the delivery of economic development activities across the county, encompassing areas of skills, business support and infrastructure provision. Such activities are underpinned by an evidence base, which highlight areas of need, barriers and opportunities for future growth.

- The Strategic Economic Plan and the Local Economic Assessment for Northamptonshire are more wide-ranging documents, ensuring these are kept refreshed and up to date will be invaluable in helping to shape future activities as well as evaluate the impact of past programmes.

- A partnership approach has been key to achieving a more holistic, strategic programme of intervention, working closely with the University of Northampton, LEPs and others to identify appropriate mechanisms to help deliver the right outcomes for the county. Some of these activities include: The development of the Northamptonshire Growth Hub (NGH) is an integral part of Northamptonshire’s Strategic Economic Plan (SEP) and is identified for support from 2015 onwards in the SEP and in the county’s European Structural Investment Fund (ESIF) and Local Growth strategies.

In 2015/16, NGH secured new funding of £250,000 from Government to continue to develop the service; a Growth Hub Manager has been recruited.

NGH operates a brokerage model based on the proposition that the county’s businesses could use one telephone or e-mail to access support to meet their needs.

- A review of the Growth Hub and wider business support provision across Northamptonshire was undertaken during 2015. It mapped provision, identified gaps and duplications, highlighted examples of best practice and put forward a number of proposals to enhance and improve the service provided, with the specific strategic target of increasing the county’s GVA and productivity levels. The Growth Hub has supported over 1,600 unique callers with Business Advice.

- The Council has played a crucial role in supporting ambitious businesses in Northamptonshire with the potential to grow.

- The high levels of competitiveness and successes achieved through these programmes is clear, with INV-ENT alone delivering 105 local projects, which together have the potential to create 489 new jobs, 137 new apprenticeships and support over 1,000 people with their skills development through an initial £1.4m investment.

- Building on the success of these programmes, the Council is working with partners to continue to support innovative and ambitious Northamptonshire businesses –with a strong focus on smart targeting of resources to produce high impact with minimal financial impact, recognising that the availability of public sector funding is increasingly limited.

- The Business & IP Centre Northamptonshire supports entrepreneurs, inventors and small businesses from that first spark of inspiration to successfully launching and developing a business. • Since it’s inception, the Enterprise Hub has supported over 1,000 people and supported over 120 new businesses to start trading. • The Council is working with partners to identify opportunities to work collaboratively on new and emerging funding programmes. • European funding has an important role to play in supporting growth and creating prosperous communities. The new ESIF programme will see €55m directly allocated to the county for 2014/20 to support priority growth areas, including innovation, research and development, support for small and medium sized enterprises, low carbon, skills, employment and social inclusion. • A further £79m has been allocated to the South East Midlands Local Economic Partnership (SEMLEP) which also covers parts of Northamptonshire. None of this funding is ring-fenced for the county. • ESIF funding provides an opportunity to bid for additional funding to support new, or the enhancement of existing, activities; but it cannot be used to replace existing funding for current activities. ESIF provides the potential to explore and deliver proposals associated with the move to a new way of delivering economic development. • Through the prioritisation process, a number of projects put forward by the Council have been identified for commencement in the 2015/16 period, including: A43 Northampton-Kettering Improvements; A45 Daventry-Development Link; Stanton Cross Access works. A number of provisional schemes have been approved for contracting and delivery during 2016/17. • The development of a range and choice of suitable office accommodation for businesses at all stages of growth is a strategic imperative. • Opportunities exist for the reuse and regeneration of current vacant spaces (including empty, redundant or derelict units and open spaces) across the borough – whether in public or private ownership. Working with local communities, charities, residents and businesses as well other partners in the public and private sector to identify these spaces and appropriate uses, as well as creating a simple mechanism for doing so, will be critical in enabling others to bring forward improvement initiatives without relying on investment from the public purse. The Council is responsible for delivering a number of key infrastructure projects in and around the town centre. A number of mechanisms exist that are currently delivering infrastructure projects of scale; these include:

- The Superfast Northamptonshire

- A complementary programme of digital related activities

- The county was successful in securing funding through the Northamptonshire Growing Places programme to support delivery of several schemes across the county. In Northampton.

- Project Angel is the new public sector headquarters situated in the middle of Northampton town centre.

Leader of the Council, Cabinet Member for Finance and Cabinet Member for Regeneration, Enterprise and Planning Northampton Borough Council (NBC)

- The development of a fully skilled workforce is fundamental to the future economic vitality of Northampton.

- Apprentices are employed at NBC, LGSS and NPH.

- A mapping exercise is being undertaken, matching skills required for Northampton. The three colleges in Northampton are also ensuring there are the right skills for the area. A lot of work is being undertaken.

- Students at St John’s have helped the economy.

- Any economic market is not perfect and will have inherent failings. The origin of any forthcoming programme must be an in-depth understanding of the local economic geography. Such a comprehensive view highlights the intrinsic market failures at play and can therefore guide policy towards specific interventions. Such an understanding is apparent within the Northampton Alive programme; a diverse range of projects aimed at intervening and catalysing the Northampton economic market and skills agenda. Individually, each project will enhance a specific (and ultimately restricted) position; a programme of many individual projects will identify and addresses market failures across the town as a whole.

- Northampton Borough Council (NBC) is working with South East Midlands Local Enterprise Partnership (SEMLEP) and Northamptonshire Enterprise Partnership (NEP) to ensure that skills are improved through schemes such as apprenticeship programmes that can be successfully developed and delivered across Northampton.

- The skills agenda is hugely important for Northampton. The Borough Council understands the current skills issues and is working with partners and stakeholders to ensure that the resident population has the necessary access to skills to meet the demand of current and investing companies. With 1.9% claiming unemployment related benefits within the town, Northampton is above the level of the rest of the East Midlands (1.6%) and Great Britain as a whole (1.7%). The amount of people with qualifications below NVQ 4 (NVQ 1-3) is at a lower level to both the rest of the East Midlands and Great Britain. This could point towards a low skilled base equating to a higher level of unemployment.

- Unemployment does not necessarily directly equate to a low skills base and with Northampton’s average weekly wage lower than the other two benchmarks make an assumption can be made that the volume of jobs in Northampton are at a lower skilled level; therefore opportunities for this skill level do exist.

- In order to raise the average Northampton wage there is a need to diversify the business base and attract companies with a high employment percentage of higher skilled jobs. Arguably, a higher skills base is required to attract the companies to the town.

- The Enterprise Zone is the most successful in the country.

- Two key benefits of the Enterprise Zone:

  - Simplified Planning process
  - Business rate “holiday” for five years up to 355,000 a year

- £330m relocation and expansion of the University into the Enterprise Zone, as part of the Northampton Alive programme, will be a huge step to increasing the volume of highly qualified individuals within the local labour market. Such an increase will attract businesses, increasing the demand and so follows an upwardly spiralling economic skills base.

- Business rate relief will enable the Council to develop Four Waterside. Expressions of interest have been received for this space and a large company is looking for office space. • By 2020 the Council will be able to keep 100% of its business rates. • It is necessary to continue to upskill those with the lowest level of qualifications; the disenfranchised and those with little or no experience. DWP work programme is in place to intervene at a generic level, introducing core employability skills to all those that claim out of work benefits. NBC adds value to this service by connecting companies to the Job centre and promoting the use of the Job Centre as a free recruitment agency for businesses. • The Council goes out four times a year to speak with businesses. • NBC works with companies to help them secure growth and ultimately increasing the employment base of the Borough. • Business support has many facets within NBC, supporting businesses both individually and as a collectively. The Business Incentive Scheme (BIS) is a grant based support mechanism aimed at aiding businesses to physically grow their operation or improve the look of their premises. Grants of up to £10,000 are available, with the level of grant achieved depending on the amount of investment going in alongside the grant and the amount of jobs created within each project. • To date, the BIS has committed just over £600,000 to over 60 businesses. This funding will create over 250 jobs and leverage in over £3,000,000 of additional private sector finance. • Inward Investment is another core delivery priority for the Council. • As identified in the NEP and SEMLEP Local Economic Plan’s, Northampton and the surrounding areas have a strong skills base in the High Performance Technology, Logistics and Food and Drink sectors. The sustained growth of these sectors will continue to support the bulk of jobs within the town and continue to attract either competing businesses, or businesses within the supply chain. • An example of how NBC can support these sectors and individual businesses within it is the work undertaken with Cosworth. Located within the Enterprise Zone, Cosworth is one of Northampton’s most prestigious brands, having previously been at the epitome of engine design and build in motor racing and performance road vehicle’s. In 2012 NBC worked with Cosworth to secure funding land and a building to ensure they were able to gain an engine build contract and secure a further 75 jobs in the town.

- NBC works closely with NEP and SEMLEP to unlock investment in the town. A combination of NBC’s in-depth knowledge of the local economy and the LEP’s expertise regarding securing national and European funding is a successful approach to channelling additional finance into individual projects within the town.

- Other key players within the local economy include the Colleges and the University.

- NBC regularly meet with businesses to gauge how the Borough Council can assist with their future ambitions and also any barriers/difficulties they are currently facing.

- The manufacturing sector, in particular, regularly talks about the difficulties they have in recruiting individuals with the relevant skills to what they require. This issue tends to be exasperated the more niche the business, or the more specific the skills requirement; particularly highly skilled individuals.

- NBC sits on the Brackmills BID Board. The main concern regularly raised is the lack of available and qualified drivers for HGV’s and the lack of qualified fork lift drivers. NBC continues to support the BID in addressing this skills gap.

- A business’ decision to invest in an area will be driven by market forces and based upon three broad areas: the location in relation to competition and customers, the availability and cost of land and property, and the availability of labour at the correct skill levels. For NBC services to enable business investment, the services need to be positively affecting one of these areas.

- Regeneration investment service allows for businesses to obtain information on all of these areas and therefore inform an investment decision. The majority of this is produced through the account management service and is assisted by NBC’s CRM; the property and enquiry database.

- The BIS can be utilised to address funding issues within specific investments. The funding can make the difference between a business choosing Northampton over another close-by district. • When making decisions regarding investment, a business needs as much certainty as possible about the outcome of such an investment, including certainty regarding several service areas of NBC; including regeneration, planning, environmental health and parking. A business will not necessarily seek a change in policy to fit with their requirements; however assistance to help alleviate specific issues will be reflected in their investment decision.

• The availability of commercial land is paramount to the delivery of inward investment and ensuring organic growth of the existing business base. Northampton has a relatively constrained geography, with few available large sites for development.

• NBC continues to invest in the physical infrastructure of the town. The opening of the bus and train stations were the core initial assets to improve the towns infrastructure, the opening of Abington Street. The future opening of St James Mill Rd will continue to improve the road infrastructure serving both the residents and the businesses.

• The location and subsequent investment of a business rests on three motivators - Location: proximity to competition and customers.

• Depending on the business, they will want to be located within a certain proximity to either their customers or their competition. The logistics sector is strong in Northampton, arguably because of the town’s central location within the country. HPT is strong in the area arguably because the skills for that sector are within the area - operating costs: costs of land/property and employees.

• A business will only invest if it makes financial sense to do so. The wages a company has to pay its workforce will depend on the wage paid by other similar businesses within the geography - Labour: the availability of labour at the correct skill levels.

• A business will not invest or locate in an area if it will not be able to recruit the right people. Depending on the skill levels required, businesses will usually look at other local businesses first to gauge skill levels. If recruiting at a lower skill level, they will also look at the local unemployment levels.

• NBC regularly consults with both the business community and residents. For the Greyfriars development an early consultation took place to get an understanding of the visions of the public for the site. The findings will be put to developers during the procurement process. A further consultation will take place later in the procurement stage to keep the public informed of progress and to revaluate their expectations.

- The Greyfriars development will be an opportunity to immeasurably enhance the town centre through a mixed use development aimed at bringing more people and spend into Northampton town centre as a whole.

- It is important for NBC to be able to regularly consult with the private sector so as to help form strategies and policy to continue to positively intervene in the local economy. The availability and willingness of the private sector to meet with us is paramount to our ability to have a positive impact.

**Principal, Moulton College**

- Young people face too many barriers to becoming apprentices. Apprenticeship programmes are not given the same priority as other educational choices for young people.

- Moulton College and Northampton College - their curriculum offer is complementary to each another. There is no duplication and referrals are made in respect of apprenticeships.

- Schools careers advice and guidance is not comprehensive nor does it provide the right information and support for young people to understand the choices and routes they have to employment. Too many careers advisors and staff in schools have limited knowledge of apprenticeships and the benefits they can bring to developing the right skills needed to add value to any business.

- There needs to be better promotion of apprenticeships, and traineeships as a direct progression route coupled with impartial careers guidance at secondary school level, and more employer involvement, particularly from SMEs will lead to high quality apprenticeship training opportunities.

- Too many young people in Northamptonshire are leaving school without 5 GCSE’s A\* - C including English and Maths and finding it difficult to meet the demands of apprenticeships. Apprenticeship schemes are demanding and provide high quality opportunities that help to develop apprentices’ careers, while simultaneously improving their skills and knowledge.

- Employers and training providers need to collaborate more effectively as this is a key factor in producing high-quality provision.

- Apprenticeship schemes must add long-term value to the individual companies and help tackle skills shortages effectively. They should be developed in tandem with industry needs and designed to meet local needs of both young people and employers.

- Employers need to make sufficient contributions to the costs of delivering these and supporting apprentices in the workplace.

- Training providers need to link more effectively with industry to ensure that the training they receive off the job is linked closely with on-the-job experience that naturally occurs in the workplace. Colleges and Training Providers need sufficient funding to be able to deliver high quality apprenticeships and vocational training.

- Apprenticeship training needs to focus more effectively on the sectors with skills shortages and this can be provided by training providers better understanding the needs of the sector through effective working with the Local Enterprise Partnership, Local Authorities and other agencies.

- Moulton College has 95% positive progression into employment, further or higher education of all its students.

- 98% of the businesses that Moulton College deals with employ less than 5 people; some of the businesses are in remote locations. The challenge is how to get young people to these work places.

- There is an inconsistency of information about skills requirements and labour market intelligence being distilled across training providers.

- SMEs are not sufficiently involved in apprenticeships and often find it difficult to employ an apprentice.

- Information about any such training scheme (apprenticeships, full-time vocational education and training) needs to be clear, transparent and make employers, employees, local community and other interested parties fully aware of all opportunities available route into employment. • It is difficult to see how the new funding model will be able to support micro-businesses.

• Moulton College’s vision for skills and learning is to provide “outstanding teaching and learning opportunities for all who will benefit from them and break down any barriers to young people being given the opportunity to excel and progress”.

• Moulton College provides apprenticeship training and a comprehensive study programme which includes young people and adults following a substantial Vocational Award, Certificate or Diploma at levels 1-3, developing skills in English and maths to a minimum standard of grade C or above at GCSE level; employability skills developed through work experience undertaken on colleges commercial enterprises and with local employers.

• Moulton college also offers university degrees at undergraduate and post graduate level in Agriculture, Animal Management, Equestrian, Countryside Management, Construction Management, Sports Therapy and Sports Performance and Coaching.

• Moulton College works with other partners to offer short courses that develop employability skills. Offering a taster of the industries it serves

• Moulton College has developed short courses with other partners that focus on those not in education employment or training (NEET). It offers a wide range of short courses that provide industry specific qualifications which are for individuals working in the industry

• Potential areas for growth at Moulton College - Maths and English teachers, Vocational specialists e.g. in the Construction Industry, Food and Drink specialist including technologists, teachers, technicians and product developers, Welding specialists, General administration and support staff

• Other organisations can help by offering better impartial information, careers advice and guidance and work experience opportunities.

• More employers should offer opportunities for apprentices at Intermediate, Advanced and higher level apprenticeships.

• Focussing on the specialisms that Moulton College offers, there is a shortage of construction workers food technologists, agricultural workers (at all levels). The College has worked very closely with Northamptonshire Enterprise Partnership (NEP) and has been instrumental in the Construction Skills Task and Finish group which is identified a strategy for growth and to meet the needs of this industry. Working with the Northamptonshire NEP; and the Food and Drink Strategy Board and the Northamptonshire Food & Drink Forum has identified that this Food and Drink industry has a low skills and workforce and specific development is required to meet the needs of this growing and buoyant industry. Moulton College will be developing a Food and Drink Innovation Academy which will focus on food manufacturing to meet this key strategic skills area in Northamptonshire and the wider region.

There needs to be more engagement with rural communities in and around Northampton from the county-wide agencies.

The Food and Drink Forum and work undertaken by NEP has established task and finish groups such as the Construction Skills Task and Finish group.

There needs to be a countywide Education Strategy to ensure there is not an uncontrolled proliferation of education providers; therefore, reducing the likelihood of duplication and to ensure that public investment provides best value for money and high quality training and education.

There is a need to ensure that all partners locally promote the benefits of living and working in this beautiful part of the country.

Assistant Principal, Northampton College

There are 1,100 apprentices in learning in a range of sectors 90% of learners who completed apprenticeships stayed with the employer and were promoted The apprenticeship framework is different for each employer. Apprenticeships range from level 2 to level 7 and each are tailored 70% of the College’s work is repeat business The College’s range of services along with its flexibility ideally places the College to support the skills development needs identified, but to further complement this the College offers via additional programmes of training. There are challenges as the education sector is judged by subject sector areas, of which there are 15, whilst there are many more categories of industries that employers represent which causes a mismatch when trying to compare provision to that with industries and priorities, and could therefore mis-represent how responsive the provision is to the priorities.

All of the College employer based work is in response to the employer needs identified and therefore could suggest is 100% responsive to meeting the needs of those we engage within the area, and great focus should be provided to engaging those who have not considered training or apprenticeships.

Short courses and pre-apprenticeship programmes are offered. The College works closely with Horizons regarding tailored need, the requirement of shorter courses etc. All courses are available for over 50s.

Northamptonshire businesses approach to skills and training identifies the skills that are found difficult to obtain from applicants, such as 8% written communications skills, 8% oral communications skills, 10% customer handling skills and 3% basic computer literacy, ICT using skills.

Employers sign up to the College’s values in respect of apprenticeships.

Connexions Targeted Support Manager, Northamptonshire Connexions

Government target for 3 million Apprenticeships by 2020. There is a need to make sure Northamptonshire has its fair share of this growth.

From April 2017 - 0.5% Levy on employers with salary bill over £3 million per annum. A small number of employers fall into this group. All employers can access financial support for employing/training an apprentice.

Funding will be directly accessible by employer rather than by training provider. Need to make sure employers are aware of this, particularly small employers.

Need to raise awareness of Apprenticeships with young people, parents as well as employer. Often seen as “third choice” after school or college. It needs to be targeted to all abilities, not just those who are not expected to progress to University etc. • Some young people are not ready/suitable to progress to Apprenticeships. Provision for this group (other than school or college) has reduced but is needed to help bridge the gap and meet employers’ needs for Apprenticeships. Currently, Apprenticeship vacancies can remain unfilled.

• Connexions’ vision is to help people “succeed, achieve and grow”. Skills are a key part of this giving people better employment prospects, leading to financial independence, security and greater resilience in difficult times. Better and higher skills give more protection in the labour market and make Northamptonshire a more attractive destination for employers, driving prosperity for the area.

• Support to 16-19 year old NEET (particularly those in vulnerable groups) - provide job clubs, vacancy services and key worker support to remove barriers to employment and learning.

• Connexions works closely with other partners, including training providers, colleges, Job centre and other support agencies e.g. accommodation, social care/looked after team.

• Like many public sector organisations Connexions has reduced in size/employment. It has however recently recruited 2 new Apprentices.

• Schools/Colleges provide effective careers education programmes to support young people to make well informed decisions about their career ideas and the routes needed to achieve. This should include opportunities to meet employers/experience the work place and discuss their ideas with an impartial adviser. Schools/Colleges have a statutory duty to provide access to IAG but are not provided with any funding to do this, as a consequence the access varies from place to place. There is a need to help schools/colleges understand that a good careers programme supports achievement agenda by giving young people a goal and motivation.

• Employers provide employment opportunities for young people but also help young people learn about their industry and what employers want by offering work experience, visits, talks in schools etc. This can be difficult for small businesses but these make up the majority of local employers. • Funding bodies/education providers/Third sector develop the range of pre-employment opportunities to help engage young people into learning and prepare them for employment.

• Young People take up the opportunities available to them, develop resilience to cope in the work place

• Industry sectors that report difficulties in filling Apprenticeship vacancies – construction, engineering and care

• Employers highlight concerns with generic skills such as problem solving, initiative, dealing with customers, telephone skills and work place behaviour e.g. attitude, motivation and team working

• Those who are seldom heard or isolated could be engaged with via outreach activities and community groups.

**Brackmills Industrial Estate BID**

• Brackmills Industrial Estate BID vision for skills and learning issues is to support businesses and staff who work on Brackmills through the provision of facilities, services and benefits which attract skilled people and which promote a positive and productive working environment and encourage and support relationships and schemes between businesses and organisations which seek to develop skills.

• Brackmills Industrial Estate BID’s vision is “to create a highly effective and functional operating environment for businesses on the estate which supports and attracts businesses and inward investment” through four key objectives.

• Its fourth objective is to support businesses and staff who work on Brackmills through the provision of facilities, services and benefits which attract skilled people and which promote a positive and productive working environment. Encourage and support relationships and schemes between businesses and organisations which seek to develop skills.

• Brackmills Industrial Estate consists of 150 businesses and 11,000 people.

• The road network in and out of the estate experiences congestion at peak due insufficient road network capacity. This could be intensified if applications are approved for housing developments in Hardingstone and Collingtree which will impact on the A45 between J15, Brackmills Gateway Roundabout and Barnes Meadow Roundabout, which already reach heavily congested levels at peak times as a result of traffic movements in and out of Brackmills. As a result, some modifications have been planned for roads and junctions surrounding the estate. It is essential that these go ahead and are completed before the additional housing is built.

- The surface of carriageways throughout the estate are rutted and present a hazard to HGV’s and Cyclists. Current Highway Inspection Standards do not include a consideration for cyclists and although some defects are less of a hazard to HGVs and cars, they can force a cyclist to be dismounted and have an accident. Investment is required in the infrastructure of the current road network for safety and to support the retention of businesses in the location.

- The reasons that business invest in Northampton include geographical location, ease of access to key road infra-structure and relatively cheaper property and business rates than further south.

**Northampton Town Centre BID**

- The Northampton Alive brand needs to be used more to act as a marketing vehicle for inward investment supported by the BID which has within its new Business Plan the activity of ‘Working with partners, landlords and property agents to market the town centre to potential new retailers and investors in line with recommendations from an updated retail strategy for the town centre’.

- The BID can provide support by meeting with the Council lead and the investor/business interested in locating in the town centre to provide a business perspective on the current situation in the town centre.

- There needs to be a co-ordinated approach to any enquiry being made by businesses who are seeking to locate in Northampton through the Economic Regeneration team, NBC.

- The largest site in the town centre, which is the area of concern for the BID, is the old Bus Station site. The Grosvenor Shopping Centre has had a limited make-over and there are a number of properties around the town centre which offer potential development opportunities.

- The key to ensuring that there is a steady stream of quality premises in the town centre is for there to be a clear vision and plan for the town centre and evidence to support the fact that the plan is being implemented. This will provide confidence to potential investors and businesses who are considering investment and growth in Northampton.

- The BID has a key role to play in working with the Council in providing a business input into the development of the town centre and providing the confidence for businesses to invest in refurbishment and development of properties and sites.

- The key elements of the town centre’s infra-structure which need to be improved are the standards of the street surfaces, notably in Abington Street, and the Market Square.

- Businesses invest in Northampton due to geographical location, ease of access to key road infra-structure and relatively cheaper property and business rates than further south

**Market Action Group (MAG)**

- The National Market Traders Federation operates various start up schemes as well as working with an Academy to enable market traders to recruit apprentices throughout the United Kingdom. Schemes such as this need to be actively promoted by the local employment centres to encourage people into this sector therefore ensuring its sustainability.

- Market traders should complete regular skills audits to identify areas they need to be developed in order to sustain and grow their business. Specifically, traders need to embrace technology in order to capitalise on new and existing customers such as social media.

- Within the market sector there is always scope for new stalls with commodities not already represented meaning there is a wealth of untapped potential. • Learning establishments and Local Enterprise Partnerships need to embrace the local market as the perfect place for start-up businesses. Job Centres could then refer individuals to these organisations to provide skills and knowledge in conjunction with the Market Officers.

• Businesses invest in Northampton because of its position within the country and its transport links. The reason retail businesses may not invest is because there are not enough big name retailers within the town and poor access to the centre.

• To engage with those seldom heard or isolated, regular Town Centre forums with all businesses invited, Newsletters to businesses from NBC, NCC and the BID

• There is a need for Town team meetings to include all public bodies, services and businesses

5 Community Impact Assessment

5.1 This Scrutiny Review investigated how partners locally, including the private sector, can work together to influence the local economy. It sought to put forward informed recommendations to all relevant parties on the most appropriate approaches in influencing the local economy

5.2 The Scrutiny Panel, in having regard to the general equality duty, was mindful of the protected characteristics when undertaking this scrutiny activity; so that any recommendations that it made could identify disproportionate and unintended potential positive and negative impacts on any particular sector of the community, including any potential mitigation required. This was borne in mind as the Scrutiny Panel progressed with the review and evidence is gathered.

5.3 In order that the Scrutiny Panel obtained a wide range of views, a number of key witnesses provided evidence as detailed in section 3 of this report. 5.4 Any recommendations regarding the health check of the local economy would consider impact and potential mitigation as appropriate and relevant across all protected characteristics. Impact assessments are integral to any reports including actions plans.

5.5 Details of the Community Impact Assessment undertaken can be located on the Overview and Scrutiny webpage.

6 Conclusions and Key Findings

6 After all of the evidence was collated the following conclusions were drawn:

6.1 From the evidence received, the Scrutiny Panel highlighted that, in accordance with its key lines of enquiry, there were three key themes of information that came from the evidence gathered:

- Physical environment
- Economic environment
- Social aspect of the economy – Workforce, the support of the workforce and how it comes together

The Scrutiny Panel was pleased to note that from the evidence received from the expert advisors, there was very little, if any duplication of services provided.

Social aspect of the Economy

Apprenticeship Programmes

6.1.1 The Scrutiny Panel acknowledges that apprenticeships contributed to £34 billion to the UK economy in 2014.

6.1.2 There is a variety of information available for both prospective apprentices and employers looking to offer apprenticeships. This information is contained in various locations. There is not however one central location where information can be obtained.

6.1.3 Evidence received details that it is envisaged by Government that there will be 3 million apprenticeships by 2020. There are 150 apprenticeships in Northamptonshire at any one time, delivered by both public and private training providers. The split of the funding is approximately, 60% for apprentices aged 16-18 and 40% for those aged 19 plus. Nationally, the retention rate of apprentices on programme aged 19 plus is generally higher than those aged 16-18 years. The Scrutiny Panel felt that small businesses perceive it is difficult to take on an apprentice. It is estimated that 90% of SMEs within Northamptonshire do not participate in the employment of an apprentice.

6.1.4 The Scrutiny Panel is pleased that Northampton Borough Council, Local Government Shared Services and Northampton Partnership Homes all employ apprentices.

6.1.5 The sectors that create a lot of interest from potential apprentices are hairdressing, ICT and the motor vehicle trade.

6.1.6 The Scrutiny Panel realises that the level of demand for apprenticeships cannot be met solely by young people; there is a need to investigate how adults can be supported to train or re-train.

6.1.7 There is a need to raise the profile of vocational education and apprenticeships so that it is held in the same esteem as further education courses and qualifications. The Scrutiny Panel acknowledges the need for further work with employers to encourage the take up of apprenticeships especially in SMEs. 6.1.8 Evidence received alludes to a lack of consistent high quality careers advice in schools.

**Economic environment**

**Areas for potential growth in jobs**

6.1.9 The Scrutiny Panel acknowledges and commends the success of the Enterprise Zone, and work undertaken by larger employers in the town such as Cosworth and Churches; recognising the need to publicise their importance to both the local and national economy.

6.1.10 The Scrutiny Panel acknowledges that Northampton has a very competitive labour market with a jobs density of 0.99.

6.1.11 The Scrutiny Panel is pleased to note that NEP is actively involved in the skills agenda and “serious about skills” as NEP recognises that the availability of skilled labour is a serious challenge for most Northamptonshire businesses.

6.1.12 The Scrutiny Panel highlights that it is essential that Northamptonshire has sufficient skills and talent to meet current and future workforce demand, particularly given our productivity “under-performance”.

**What other organisations/groups/individuals can do to help**

6.1.13 NBC works with companies to help them secure growth and ultimately increasing the employment base of the Borough. The Scrutiny Panel acknowledges that NBC can support these sectors and individual businesses within it. 6.1.14 The Scrutiny Panel welcomes the frameworks of both SEMLEP and NEP; recognising it could have greater influence over skills policy in the future. It further welcomes the work that the Council does with these organisations.

6.1.15 Evidence received highlights the important roles of the two Colleges and the University in the town in the future of the local economy. The Scrutiny Panel felt that schools and employers could work closely to provide work place experiences for young people that are still in education.

6.1.16 The Scrutiny Panel welcomes the links that SEMLEP has with the colleges in the county and that from 2016 SEMLEP will employ two Enterprise Co-Ordinators that will work with schools and businesses.

6.1.17 The Scrutiny Panel acknowledges the amount of funding available but suggests there was a need for this to be publicised. It realises that there is a limited fund for marketing purposes.

6.1.18 Evidence highlights the success of the programmes led by Northamptonshire County Council (NCC), for example, INV-ENT delivered 105 local projects that have the potential to create 489 new jobs, 137 new apprenticeships and support over 1,000 people with their skills development through an initial investment of £1.4 million.

**Mapping skills gap exercises to identify the type of skills that are in short supply; and what the findings of this exercise are**

6.1.19 The Scrutiny Panel highlights that the skills agenda is very important for Northampton. It notes that the manufacturing sector in Northampton has difficulties in recruiting individuals with the relevant skills to what they require. There is also a lack of available and qualified drivers for HGV’s and also the lack of qualified fork lift drivers.

6.1.20 The evidence received further highlights that it is difficult to recruit people to certain sectors such as ICT and engineering. There are a lot of warehouses and distribution centres in Northampton, employing large numbers of low skilled workers.

**How specific servicers can be used to generate business investment**

6.1.21 The Scrutiny Panel welcomes that SEMLEP encourages Universities and Colleges to work with businesses such as South Bedfordshire College working and linking to Vinci.

6.1.22 The Scrutiny Panel acknowledges the Business Incentive Scheme (BIS) can be utilised to address funding issues within specific investments. The funding can make the difference between a business choosing Northampton over another close-by district.

6.1.23 The Scrutiny Panel welcomes the work undertaken by Northamptonshire Growth Hub and Northamptonshire University to enable employers to access funding for skills from universities worldwide.

6.1.24 Evidence received highlights that Northamptonshire County Council has been proactive in developing a flexible approach to the delivery of economic development activities across the county, this includes areas of skills, business support and infrastructure provision.

6.1.25 The Scrutiny Panel acknowledges that the £330 million relocation and expansion of the University into the Enterprise Zone, as part of the Northampton Alive programme will be a big step to increasing the volume of highly qualified individuals within the local labour market. How can the offer of commercial land in the borough be improved to ensure a steady stream of quality premises that are accessible by new and established organisations?

6.1.26 Evidence received details that the availability of commercial land is paramount to the delivery of inward investment and ensuring organic growth of the existing business base. Northampton has a relatively constrained geography, with few available large sites for development such as FOUR Waterside in the Enterprise Zone.

How it can be ensured that those who are seldom heard or isolated are engaged with

6.1.27 The Scrutiny Panel welcomes the Big Lottery opt-in of the European Structural and Investment Fund (ESIF) that specifically targets groups that are furthest from the labour market.

6.1.28 The Scrutiny Panel further welcomes that some voluntary and community organisations help support people into employment. A number of courses have been run for a long period of time.

Vision for skills and learning issues, particularly low skills

6.1.29 The Scrutiny Panel supports the rollout of the Enterprise Advisors Pilot and that the Northampton model has been adopted for the national roll out.

6.1.30 The Scrutiny Panel recognises that, in accordance with the European Social Fund, people of all ages can be re-skilled and trained.

6.1.31 Evidence received shows that Northampton is low skilled area. Aylesbury Vale is high skilled. Northampton is similar to Corby and Luton. Northampton does however have huge opportunities that need to be realised. 6.1.32 The Scrutiny Panel notes the reported conclusion from the Chamber of Commerce quarterly survey:

“The results from the Q2 2015 QES signals continued growth by firms in the county – but with noticeable differences between manufacturing and services.

“The service sector appears to be making good progress but there has been a slowdown in the pace of growth experienced by manufacturers in Northamptonshire however this is consistent with the national trend indicated by our national partners at The British Chambers of Commerce.

“We still need to secure long-term sustainable growth which will help drive the economy. The Government must support firms across the board by reducing the cost of doing business and tackling issues such as high business rates and energy costs as well as provide support for investments which can increase productivity and exports.”

Support for those that are in long term unemployment

6.1.33 The Scrutiny Panel emphasises that developing skills and employability is not just about apprentices and young people, it is also about helping adults who are not employed and those who need to re-skill. The European Social Fund apprenticeship grant will enable a lot of work to be done with those furthest away from the job market; targeting the hardest to reach groups. The Scrutiny Panel acknowledges that support of those that are in long term unemployment is important as on the latest statistics long term unemployment is marginally higher in Northampton at 0.5% than at GB level (0.4%).

6.1.34 The Scrutiny Panel acknowledges the importance of the partnerships with local organisations, who exist to meet the needs of the seldom heard or isolated. It realises that they are vital to engage with this target group and enter into a dialogue in which people can voice their aspirations, needs and issues and a bespoke programme of learning can be arranged. Evidence provided highlights that key partners include: Kettering centre for the Unemployed (KCU), Wellingborough Homes, Bridge project, Papworth Trust and Ground Work.

**Physical infrastructure in and around the town**

6.1.35 Funding was received by SEMLEP for infrastructure, £46.7 million for 2017/18.

6.36 Analyse indicates that development is taking place, but it is primarily focused upon the large logistics sites at M1 J15 and J15a; Grange Park and Swan Valley. Further, the type of premises being constructed are large distribution warehouses designed to cater for the regional and national market, rather than for those companies who are - necessarily – already based in Northampton. Existing businesses in Northampton might take a small amount of the space either recently/currently built, but the target audience for the developers is not the local market.

6.1.37 Evidence received highlights that any economic market is not perfect and will have inherent failings. The origin of any forthcoming programme must be an in-depth understanding of the local economic geography. The Scrutiny Panel realises that such an understanding is apparent within the Northampton Alive programme; a diverse range of projects aimed at intervening and catalysing the Northampton economic market and skills agenda.

6.1.38 The University, together with all further education colleges, is carrying out a research based project regarding an integrated transport system for the county. The Scrutiny Panel felt that it would be useful to obtain the results of this research when it is finalised. 6.1.39 The evidence highlights that NBC continues to invest in the physical infrastructure of the town. The opening of the bus and train stations were the core initial assets to improve the town's infrastructure, however the opening of Abington Street and the future opening of St James Mill Rd will continue to improve the road infrastructure serving both the residents and the businesses.

6.1.40 From the evidence received the Scrutiny Panel acknowledges that the location and subsequent investment of a business rest on three motivators:

- Location: proximity to competition and customers.
- Operating costs: costs of land/property and employees.
- Labour: the availability of labour at the correct skill levels.

7 **Recommendations**

7.1 The purpose of the Scrutiny Panel was to look at how partners locally, including the private sector, can work together to influence the local economy. Scrutiny Panel 1 therefore recommends to Cabinet that:

7.1.1 The Council, together with its partners, develops a Skills Strategy for Northampton. This should include mechanisms for colleges and employers, especially SME’s to signpost vacant apprenticeships across the town, whilst raising the profile of apprenticeships and vocational training in Northampton.

7.1.2 Cabinet investigates ways that the Council, and its partners, can continue to raise the profile of the economic growth and investment in Northampton through the Northampton Alive Programme, in particular the success of the Enterprise Zone, and work undertaken by larger employers and investors in the town. 7.1.3 It is recommended to Northamptonshire County Council and partners that schools and employers work closely to provide work place experiences for young people that are still in education.

**Overview and Scrutiny Committee**

7.1.4 The Overview and Scrutiny Committee, as part of its monitoring regime, reviews the impact of this report in six months’ time.